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Important cost of living dates that could hit your pocket during 2022

today30 August 2022 1

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The cost of living crisis has been hitting families’ bank accounts for months and things are only expected to get worse as we head into winter and people have to start using their heating. Now the new energy price cap has been announced, there’s more to come in terms of financial struggles as we head towards the autumn and winter months, leading up to Christmas.

The first of these money-draining events that are guaranteed to add to people’s financial worries are children going back to school, with parents facing the usual task of getting new uniforms and shoes in time for the new school year, reports Staffordshire Live.

In 2020, the average cost of a uniform for secondary schools was £337 and £315 for primary schools, according to figures released by The Children’s Society charity. A new law to protect parents in England from unnecessary school uniform costs will come into effect this September.

READ MORE: Latest news on the Cost of Living crisis by Derbyshire Live

The idea behind that is to prevent families from having to shell out on too many branded items, however, schools which need to find a new supplier have until September 2023 to introduce those changes. Here are some more upcoming changes which could make money even tighter for families for the rest of the year, according to research carried out by the BBC.

September 5 – New Prime Minister announced

Former Foreign Secretary Liz Truss and chancellor Rishi Sunak are fighting it out to become the country’s new Prime Minister. Mrs Truss has pledged to immediately reverse the rise in National Insurance while Mr Sunak has promised more money to help with energy bills depending on the extent of price rises.

September 15 – Interest rates could see mortgage payments rise

The Bank of England raised interest rates to 1.75 per cent in August and the thought is they will go up again, with suggestions being as high as 2.25 per cent. This would mean a £250,000 standard mortgage, paid back over 25 years, would cost an extra £30 per month.

September 20 – Disability claimants to receive one-off payment

People on disability benefits will receive a one-off cost-of-living payment of £150 from September 20. More than eight million low-income households on means-tested benefits will also receive £324 – the second instalment of a cost-of-living payment – this autumn.

The first instalment of £326 was made in July and those on tax credits will have to wait longer, as the first payment will be in the autumn and the second instalment during the winter. A similar one-off payment for elderly people will also be paid in November or December.

October 1 – New energy price caps to be introduced

The price cap announced at the end of August will come into effect in October, taking a typical bill to £3,549 a year. The cap is the maximum amount suppliers can charge customers in England, Scotland and Wales for each unit of energy, and is meant to protect customers from short-term price spikes.

But because electricity and gas prices are going up at the moment, the cap is set to go up, too. However, the first instalment of the government’s £400 energy rebate will start to arrive about now, with a discount of £66 or £67 able to be applied for by households every month until March 2023.

November 3 – Further decisions to be made on interest rates

Another rise in interest rates could well be on the cards due to continuing inflation and economic growth. The Bank of England forecasts inflation to top 13 per cent by the end of the year and predicts a long recession, with other forecasters saying inflation could hit 18 per cent next year.

November 24 – Price cap announcement expected to be made

Originally the energy price cap changed every six months, but Ofgem has now said it will change every three months so price rises and falls will be passed on to customers more quickly. Current predictions say the price cap could go up again – this time to over £4,500.

December 15 – Further decisions to be made on interest rates

Yet another interest rate rise could come at the end of the year. The Bank of England will assess the impact of its previous actions, but most forecasters expect interest rates to rise to 3 per cent next year, with some saying they could go as high as 4 per cent.

December – Christmas spending

December is always a tight month for people as presents are added on top of already tight budgets. Christmas Eve is typically the biggest shopping day of the year, apart from Black Friday – the last Friday in November.

December – Rail fare increase announced

The government announced earlier this month that regulated train fares in England will rise below the rate of inflation next year, though it has not confirmed what the exact figure will be. The rise will come into effect in March 2023.

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